First the USA then Europe. The storm that broke out on Wall Street on Wednesday following the publication of Tesla and Alphabet's quarterly reports on Thursday has raged across all Bags of the old continent, with Milan which recorded one of the worst international performances, closing the session with a decline of 2,03 to 33.771. In the US, however, stock markets are trying to resist, proceeding with caution after the stronger-than-expected GDP data.
Wall Street tries to resist
After the sell-off experienced yesterday, with the S&P 500 and the Nasdaq recording the worst session since the last quarter of 2022 due to the collapse of Big Tech, the US stock market is trying to turn the page or at least calm the storm: the Dow Jones earns 0,8%, lo S & P 500 0,4%. The Nasdaq instead, after a see-sawing session, it closed in the red (-0,93%) and investors continue to ask themselves whether what is happening in the last few days is just a gut reaction to the disappointing quarterly results or whether it is the phantom correction that will put an end to the big tech and AI stock rally. Try the rebound Tesla, which rises by 3% after the -11 recorded on Wednesday following the publication of the quarterly report. However, it remains weak A (-0,2%), while Meta gives up 1%. Sales instead hit the auto sector, with Ford which loses almost 17% and Stellantis which also collapses in New York (-8%).
Instead, the latest data on the economy, which proved stronger than expected, has cheered investors' mood up a bit. The preliminary reading of Second quarter GDP in fact, it speaks of an increase to 2,8% compared to the 2,1% expected by the consensus at 2,1%. “Core” PCE inflation for the quarter stood at 2,9%, against the 2,7% of expectations. New claims for unemployment benefits fell by 10.000 to 235.000, in line with expectations. Orders for durable goods fell sharply (-6,6%), while an increase of 0,3% was expected. Data on theJune PCE inflation, which will be used by the Federal Reserve to decide the next moves on interest rates, with the markets now certain that the Central Bank will lower rates by September even after today's good data on US GDP.
Stock market closes July 25th: Europe in the red, Kering and Renault collapse in Paris
Lo Stoxx 600 recovers from the lows of the day and closes the session with a decline of 0,7%, dragged down by the auto sector (-2,25%), the tech sector (-2,67%) and the media sector (-2,72 %).
Piazza Affari is in the black jersey, followed by Paris which dropped 1,1% overwhelmed by the collapse of Kering (-7,5%) And Renault (-8,1%). Yesterday afternoon, with the markets closed, the luxury giant published the accounts for the first half of the year, which closed with a profit almost halved and launched the second profit warning of the year. What is weighing on Renault instead is alliance partner Nissan's cut to its full-year 2024 outlook after its first-quarter profit was almost completely wiped out. In deep red (-6%) also Vivendi which pays for the collapse (-23,5%) of the subsidiary Universal Music which reported a slowdown in subscriptions and streaming in the second quarter.
Moving on to the other price lists, it loses 0,58% Madrid, while Frankfurt marks -0,96% weighed down by the auto sector and the Ifo index on the climate of confidence of German companies which fell to 87 in July from 88,6 in June. This is the lowest value since February and a figure decidedly below analysts' expectations. Outside the EU, London is saved (+0,4%).
STM and Stellantis sink Piazza Affari
Black day for stmicroelectronics which closed the session with a decline of 13,7%, pushed downwards by the dark period in the tech sector but also the second quarter accounts, archived with falling profits and revenues, in both cases above consensus forecasts.
Crolla Stellantis (-8,69%), which this morning announced a profit down 48% in the first half. “The company's performance in the first half of 2024 was lower than our expectations, reflecting a difficult sector context but also corporate operational issues,” commented CEO Carlos Tavares, adding that “While on the one hand corrective actions were necessary, now in the execution phase, on the other hand we have started a product offensive, which envisages no fewer than 20 new models to be launched during the year, and which will offer greater opportunities the more well executed".
Sales rain on Interpump (-7,4%), Iveco (-7,6%) And Leonardo (-3,94%). The banks are also in deep red: Ps (2,74%), Unicredit (-2,68%) despite the excellent quarterly published on Wednesday, Intesa Sanpaolo (-0,68%)
In the auto sector it also closed in the red (-1,78%). Classic Ferrari for sale, while it goes against the trend Pirelli (+1,3%), which benefits from the performance of Michelin (+5,2%), which yesterday announced that it had closed the first six months of 2024 with a decline in tire sales, but that it had protected its profits by selling more expensive tires at a time when the European market does not allow plus exports.
It bounces Moncler (+1,87%). Utilities with were also positive Getting very (+ 2,17%), Terna (+2% awaiting the quarterly), Italgas (+ 1,5%), Hera (+ 0,8%).
The other markets
On bonds, after a day of ups and downs, it closed stable at 138 basis points spread between the ten-year BTP and the Bund of the same maturity, while the yield of the benchmark ten-year BTP is 3,79%.
Reduction of more than 1% for Petroleum, with Brent at 80,88 dollars a barrel in September, WTI at 73,63 dollars. On the currency market, the euro is at 1,084 against the dollar.
